GCB Bank achieved strong profit growth in the first half of 2024, outperforming the same period in 2023. This success was primarily driven by a significant rise in customer deposits and a strategic focus on optimizing operational efficiency.
The Bank’s Profit Before Tax (PBT) increased by 35% year-on-year to GHS 700.3 million, fueled by growth in interest income and a 21% year-to-date increase in customer deposits. Total revenue grew by 5% year-on-year to GHS 1.89 billion, with net interest income also rising by 5% to GHS 1.43 billion. Net fees and commission income saw a notable 28% increase to GHS 245.4 million, driven by higher earnings from electronic services, trade services, and facility fees. Additionally, net trading income contributed GHS 211.8 million to revenue.
Operating expenses for 1H 2024 reached GHS 1.08 billion, a 17% increase from the previous year, driven by inflation and currency depreciation. However, the Bank’s improved risk management strategies led to a 70% reduction in impairment loss on financial assets, amounting to GHS 104.8 million.
The Bank’s balance sheet expanded significantly, with total assets rising 22% year-to-date to GHS 33.20 billion. This growth was supported by strong deposit inflows, reflecting customer confidence in GCB’s resilience amidst macroeconomic challenges. Shareholders’ Equity increased by 15% year-to-date to GHS 3.22 billion, bolstered by higher profits, while Earnings Per Share (EPS) grew from GHS 2.52 in 1H 2023 to GHS 3.20 in 1H 2024. The Bank’s Capital Adequacy Ratio stood at 18.5%, well above the regulatory requirement of 10%, with a Return on Equity of 26.2% and a Return on Assets of 2.8%.
Commenting on the results, Managing Director John Kofi Adomakoh attributed the strong performance to a focus on sales and transaction banking, expanding client relationships, stringent credit standards, cost-effectiveness, and robust risk management. He also mentioned that the Bank had decided to pause its capital-raising plans due to its strong financial performance, with a commitment to rebuilding capital through future profits.
GCB Bank’s 1H 2024 results highlight its financial stability and preparedness to navigate Ghana’s complex financial landscape with confidence and strategic foresight.
